SBI raises Rs 3,000 crore from bonds to fund business growth

Country's largest lender State Bank of India (SBI) today said it has raised Rs 3,000 crore from bonds to fund business growth.

The bank yesterday issued 30,000, Basel III compliant, Tier-ll bonds, in the nature of debentures, of face value of Rs 10 lakh each at par, SBI said in a statement.

Bonds with 10 years maturity will give 8.45% annually to investors who subscribed such bonds on private placement basis, it said. They come with call option of 5 years.

The bank through these bonds raised Rs 3,000 crore, it said.

Recently, SBI got board approval to raise Rs 15,000 crore from various means, including public offer and overseas issuance of shares, in the next 14 months.

The fund raised will help the bank to meet global risk norms, Basel III, which will kick in from March 2019.

The committee of directors, at January 15 meeting, authorised the bank to seek shareholders' approval and to write to Government of India and RBI seeking their approval for extending the period of approval for raising capital up to Rs 15,000 crore till March, 2017, SBI had said.

The fund would be raised either through follow on public issue, qualified institutional placement, rights issue, private placement, Global Depository Receipt, American Depository Receipt or combination of these, it had said.